Avid Technology Group, whose products improve vehicle efficiency and reduce emissions, secured £2m from the Newcastle-based NVM Private Equity. The remainder of the finance will come from the North East Technology Fund (NETF), the London-based Downing LLP, and Andy Hales, formerly a corporate finance partner in KPMG’s diversified industrials team, who will now join the company’s board as chairman.

Founded by entrepreneur Ryan Maughan, Cramlington-based Avid is at the forefront of technical developments leading the transition of vehicle powertrain to clean and efficient hybrid and electric technologies.

Its systems are used in applications ranging from buses and off-highway machinery to supercars.

The company, which has grown significantly, has become a major development partner for vehicle manufacturers worldwide due to the full service it provides, from concept, design and testing through to full integration into the vehicle.

The new funding will enable the firm to the increase engineering and manufacturing capability and capacity at its Cramlington facility.

Mauro Biagioni, of NVM Private Equity, who led the deal with support from Charles Winward said: “Avid has a strong platform for growth. We have been impressed by the customer feedback and believe we have identified a business with an excellent leadership team.

Downing LLP partner Kostas Manolis said: “We are delighted to be able to support the growth of Avid Technology Group at a very exciting time for the business.

“We also recognise the benefits of investing alongside NVM and IP Group, two well-respected and dynamic investment houses, and we look forward to working with such a great team.”

Mr Hales, who has worked across the global engineering sector, said he saw a “significant opportunity” for UK specialist engineering companies like Avid that had a “strong reputation for innovation, quality and delivery”.

Mr Maughan said: “This investment builds on the success of our fantastic team with our customer base of blue chip vehicle manufacturers and operators across the world.

“It will allow Avid to develop its engineering and manufacturing capabilities, to continue our mission of improving the efficiency and environmental impact of the most polluting vehicles.

“I am very grateful for the continued support of IP Group’s NETF and the new investments from NVM and Downing who have recognised the capability of the AVID business.

“I am looking forward to working with the team to continue to deliver the vision for the business.”